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Humber College PREX-1060A Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Commercial Real Estate Transactions | - Commercial leasing and property analysis
|
Humber College Exam 4: Invigilated Theory Sample Questions:
1. Which of the following is most likely to be a factor in an appraisal for an industrial property?
A) Price trend for detached homes in nearby neighborhoods
B) Proximity to museums and historical sites
C) Amount of advertising and publicity
D) Access to raw materials used in the region
2. A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer's salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer's own expense, and to the buyer's satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?
A) The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.
B) The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.
C) The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.
D) The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.
3. Sometimes, transactions do not close. When a transaction won't be completed, what should a salesperson try to do as soon as possible?
A) Conduct an analysis of why the transaction will not be carried out.
B) Obtain the remuneration owed.
C) Pass the transaction to the broker of record so that the broker will take care of it.
D) Terminate the transaction and disengage from it.
4. In regard to cash flow into and out of a business, which of the following is correct?
A) Operating cash flow can be positive or negative.
B) Sales proceeds cash flow does not affect investor decisions.
C) Operating cash flow is used when determining yield on an investment property, while sales proceeds cash flow is not used for this purpose.
D) Sales proceeds cash flow is used when determining yield on an investment property, while operating cash flow is not used for this purpose.
5. A salesperson negotiates the purchase of a retail property for their client, who plans to open a new store at this location. The client asks the salesperson how many parking spots the property will be required to have to meet the zoning requirements. The salesperson replies that the municipality has zoning requirements that set the minimum parking ratio. How will the municipality calculate the parking ratio?
A) The municipality will take the number of available parking spaces and divide it by the projected number of monthly visitors.
B) The municipality will take the number of available parking spaces and divide it by the property's gross leasable area.
C) The municipality will take the number of available parking spaces and divide it by the property's net leasable area.
D) The municipality will take the property's gross leasable area and divide it by the number of available parking spaces.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: D |

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